Gas deregulation plan heads to PM

Islamabad is weighing a staged loosening of rules in the gas sector, with a restructuring roadmap set to reach the prime minister after a senior review led by Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue. The Express Tribune, citing a Ministry of Finance statement released on Monday, said the plan targets a sustainable, competitive market that supports industry, invites private money and safeguards consumers.

According to the ministry, the framework sets out a gradual move toward more competition, backed by stronger regulation, better operating performance and a steadier way of handling prices and supply. Participants discussed circular debt, cross-subsidies, unaccounted-for-gas losses and supply-demand imbalances, with a focus on legacy liabilities and the finances of gas utilities. Officials were told the design has to keep supplies secure during the changeover.

The statement said a durable fix for legacy circular debt, along with a way to handle cross-subsidies, is seen as key to the viability of the restructured entities. Expected gains listed include greater energy security, more private investment, lower fiscal risk, steadier gas prices and reduced system losses through efficiency benchmarks. After the prime minister sees the framework, technical work and consultations with stakeholders will follow.